More fuel for the rumors that Dow Chemical Co. could part with its high-flying Dow AgroSciences business: A company lawyer reportedly revealed in court that Goldman, Sachs & Co. is advising a potential bidder for the business.
Dow CEO Andrew Liveris surprised some earlier this month when he suggested his company, which is searching for at least $7 billion in financing to complete its $15.3 billion deal for Rohm and Haas Co., could part ways with Dow Agro. The company has since declined comment beyond saying all options are on the table.
But the company might have tipped its hand
in court documents obtained by The Wall Street Journal's Deal Journal. According to that report Dow, which is set to face off in court with Rohm next month over the stalled deal, objected to Rohm adviser Goldman's request to examine Dow's method for valuing assets for sale. The reason for the objection? Goldman is apparently involved in a Dow auction.
"We happen to know that they are involved adversely to Dow in a major multibillion-dollar transaction involving Dow AgroSciences right now, counseling a buyer," Dow attorney Nader Boulos said, according to the report.
Deal Journal also said a Rohm lawyer seemingly later reveals the potential bidder, telling Judge William Chandler that the group at Goldman working with Rohm that wish to see the Dow documents are separate from the Goldman staffers "working on Syngenta or any other matter."
TheDeal.com
reported earlier this month that Swiss agribusiness firm Syngenta was a potential bidder for Dow Agro, but both companies at that time offered no confirmation. Dow again refused comment on Friday, but Syngenta interestingly told Deal Journal that it has "no knowledge that Dow has put its AgroSciences division up for sale."
Some in the chemicals industry reached Friday still believe that while Dow might be gauging interest in the Agro unit it remains reluctant to sell it, a view that might explain the apparent conflict between Syngenta's comments and the court transcript. -
Lou Whiteman
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Andrew, have you lost your mind? Step aside and let someone recover this once great company before you get us all jobless. You have done enough admit you failed and made some bad decisions and get out of the way!